A GlobalData survey indicates that consumer inertia remains a key feature of the UK motor insurance market, with many policyholders failing to act at renewal despite engaging with the market. This behaviour contributes to persistent overpayment, as a significant proportion of customers default to their existing provider rather than switching to more competitive offers.
GlobalData’s 2025 UK Insurance Consumer Survey found that 24.6% of respondents renewed their motor insurance without shopping around, while a further 44.3% shopped around but ultimately remained with their existing insurer. In contrast, only 27.6% switched to a new provider. These findings highlight that even when consumers actively engage with the motor insurance market, switching rates are relatively limited. This suggests that behavioural inertia and perceived switching friction continue to exert a significant impact at renewal.
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Go.Compare has further highlighted the scale of this issue, estimating that 24 million UK consumers could be overpaying for insurance due to auto-renewal, as many fail to shop around or act on available savings. Its findings reinforce concerns that automatic renewal mechanisms coupled with low switching rates are contributing to widespread inefficiencies in the market, thus limiting the extent to which competitive pricing benefits are passed on to consumers. For insurers, these dynamics represent both a challenge and an opportunity. While customer retention remains high due to inertia, growing scrutiny around fair pricing and consumer outcomes may place pressure on providers to improve transparency and engagement at renewal. At the same time, comparison platforms and digital tools are well-positioned to capture value by reducing friction in the switching process and encouraging more active consumer behaviour.
